Gold Forecast
19/10/2018 by FICA-Academy
The focus is on the Fed that is running off its balance sheet, forcing yields higher and a scramble to the greenback while geopolitical tensions also favour a bid in the US dollar, especially when considering the implications for emerging markets all the while that the global growth picture has been downgraded.
The US economy continues to diverge - dollar positive/ gold bearish
The US economy continues to diverge from that of its closest DM nations such as China and the eurozone and the FOMC minutes signaled that so long as the US economy continues to grow at such a pace, they will likely have no choice but to continue raising interest rates, perhaps even beyond the neutral rate of 3% - The market has all of sudden picked up on that point and hence we have seen a rally in the greenback since the release of the hawkish FOMC minutes on Wednesday.
Technical analysis:
According to 4hrs chart view, Gold plays side way forming W pattern. Technically, critical point R2 at 1231, if it doesn't break at R2, then wait for confirmation price at 1230.
Sell: 1230
TP:1228/1225
SL:1232
By FICA-Academy.com
No comments:
Post a Comment